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Church's Chicken(TM) Inks Master Franchise Agreement

Tue, 15 Jan 2002 Source: afc enterprises, inc.

...To Develop 100 Restaurants in 19 African Countries

Church's Chicken(TM), a division of AFC Enterprises, Inc. (Nasdaq: AFCE - news), announced today the signing of a master franchise agreement with South African-based Steers Holdings, Jersey Ltd. to subfranchise the development and operation of 100 Church's Chicken restaurants over the next five years. The master franchise agreement awards exclusive rights to Steers Holdings to subfranchise Church's Chicken restaurants in South Africa, Mozambique, Swaziland, Zambia, Tanzania, Ghana, Botswana, Mauritius, Namibia, Zimbabwe, Kenya, Uganda, Ivory Coast, Lesotho, Nigeria, Egypt, Morocco, Tunisia, and Cameroon. The first restaurant is scheduled to open in South Africa by early April 2002. The restaurants will serve American Southern-style fried chicken, sandwiches, and traditional side items including Honey-Butter biscuits, jalapeno peppers, cole slaw, french fries, and mashed potatoes.

Steers Holdings is a leading quick service restaurant franchisor in South Africa, with over 450 branded restaurant locations. Their restaurant holdings include Steers, a flame-grilled hamburger chain; Debonairs, a pizza concept; and FishAways, seafood quick service restaurants. ``We were looking to add a high-quality, branded chicken restaurant chain to expand our current portfolio,'' says Kevin Hedderwick, Chief Operations Officer for Steers Holdings. ``Church's made sense for us as they have global brand recognition, a streamlined operating system, and experienced support teams,'' added Hedderwick.

Church's Chicken president, Hala Moddelmog, has been eyeing the African market for franchise development for a few years. ``Church's was searching for the right franchise partner to introduce the Church's Chicken brand to Africa. Steers Holdings has the proven franchising expertise and infrastructure to make Church's a tremendous success across Africa.''

In addition to the Africa agreement, Church's signed franchise development agreements in 2001 to open restaurants in Venezuela, Ecuador, Panama, Jamaica, Bahamas, Aruba, Curacao, and St. Marteen. Church's currently has franchised restaurants operating in the United States, Puerto Rico and eight other countries.

About Church's Chicken

Church's Chicken, one of the world's largest quick-service chicken restaurant concepts, specializes in Southern-style chicken and side items such as mashed potatoes and gravy, okra, corn on the cob and its unique Honey- Butter biscuits. Church's is positioned as the New Value Leader, providing meals with large portions at low prices for price conscious consumers. Church's Chicken has more than 1,500 locations worldwide and had system-wide sales of approximately $878.8 million in 2000. Visit Church's Chicken on the World Wide Web at www.churchs.com .

About AFC Enterprises, Inc.

AFC Enterprises, Inc. is the franchisor and operator of more than 3,750 restaurants, bakeries and cafes in the United States, Puerto Rico and 30 other countries under the brand names Church's Chicken(TM), Popeyes? Chicken & Biscuits, Cinnabon?, Seattle's Best Coffee?, and Torrefazione Italia? Coffee. AFC's primary objective is to be the world's Franchisor of Choice? by offering investment opportunities in highly recognizable brands and exceptional franchisee support systems and services. AFC had system-wide sales of approximately $2.4 billion in 2000 and can be found on the World Wide Web at www.afce.com .

Forward Looking Statement. Certain statements in this release, and other written or oral statements made by or on behalf of AFC or its brands, are ``forward-looking statements'' within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. These forward-looking statements are subject to a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the cost and availability of our principal food products, labor shortages or increased labor costs, our ability to franchise new units and expand our brands, our and our franchisees' ability to successfully operate existing units and open new units, changes in consumer preferences and demographic trends, competition, general economic, political and regulatory conditions and the risk factors detailed in our Annual Report on Form 10-K for the year ended December 31, 2000 and the other documents we file with the Securities and Exchange Commission. You should not place undue reliance on any forward-looking statements, since those statements speak only as of the date they are made.

CONTACT: Tom Johnson, COO of International Church's Chicken,
+1-770-350-3880; or Ellen Hartman VP, Communications of AFC
Enterprises, +1-770-353-3152

Source: afc enterprises, inc.